Calypte Biomedical Announces Third Quarter and Nine-Month Financial Results

Calypte Biomedical Announces Third Quarter and Nine-Month Financial Results 


ALAMEDA, Calif., Nov. 14  /PRNewswire-FirstCall/ -- Calypte Biomedical
Corporation  (BULLETIN BOARD: CYPT) , the developer and marketer of the only two
FDA approved HIV-1 antibody tests for use with urine samples, today announced
financial results for the third quarter and nine-months ended September 30,
2003.

Revenues for the quarter totaled $897,000, versus revenues of $493,000 for the
comparable period in 2002 and $749,000 for the previous quarter ended June 30,
2003. The net loss attributable to common stockholders for the quarter was $7.3
million, or $0.11 per common share, compared to a net loss of $1.5 million, or
$0.51 per common share for the three months ended September 30, 2002. The net
loss for the third quarter of 2003 and 2002 included a $4.8 million loss and a
$1.3 million gain, respectively, in non-cash items that were primarily related
to the grants of common stock, options and warrants as compensation for services
and non-cash interest expense related primarily to the accounting for Calypte's
convertible debt financing instruments.

For the nine months ended September 30, 2003, revenues totaled $2.4 million,
versus revenues of $2.9 million for the same period last year. The net loss
attributable to common stockholders was $21.6 million, or $0.75 per common
share, compared to a net loss of $7.2 million, or $3.41 per common share for the
nine months ended September 30, 2002. The net loss for the nine months ended
September 30, 2003 and 2002 included a $12.8 million loss and a $2.1 million
loss, respectively, in non-cash items that were primarily related to the grants
of common stock, options and warrants as compensation for services and non-cash
interest expense related primarily to the accounting for Calypte's convertible
debt financing instruments.

"Calypte has met challenges this quarter and is continuing to pursue its
international marketing goal for rapid urine testing and this product
development cycle," stated Tony Cataldo, Calypte's Executive Chairman. "The
HIV/AIDS testing market is vast and Calypte is dedicated to achieving a
significant penetration into that market in the coming quarters."

Following are the company's most significant milestones since the last quarterly
release together with the progress made in the development of its rapid HIV
products and the strengthening of the balance sheet:

   * The company submitted an application with the U.S. Food and Drug
     Administration (FDA) for an Investigational Device Exemption (IDE) for
     its HIV-1/2 lateral flow antibody Rapid Blood Test to be performed on
     whole blood. This represents the Company's first application in
     connection with several rapid HIV diagnostic tests the Company has
     under development. The Company expects to submit a similar application
     for its urine-based HIV-1/2 Rapid Test sometime next year.

   * The company believes that there is strong demand for a rapid urine
     product and is moving forward with international clinical trials and is
     in the initial planning stages to establish the manufacturing locations
     necessary to produce product and file for approvals in key African
     countries as well as China. Further to this end, as part of its
     association with the Marr Group, it is forming a joint venture in China
     to manage this important market.

   * Calypte completed a $10 million equity financing agreement with Marr
     Technologies, B.V. via the issuance of 20,000,000 restricted shares of
     common stock at a price of $.50 per share.

   * Calypte also concluded a $10 million debt facility from Marr
     Technologies, B.V.  this week.  The monies can be drawn down during
     next spring in the form of 12-month notes bearing simple interest at
     5%.  In order to obtain full access to the line the company has
     committed to moving to a major stock exchange no later than the end of
     the first quarter of 2004.  This provides an extra $10 million in
     available working capital in 2004, as necessary, while the company
     seeks to bring its HIV rapid products to market.



Calypte exited the quarter ended September 30, 2003 with $9.0 million in cash,
$6.5 million in working capital, and a 9-month average burn rate for 2003 of
$1.1 million.

Commenting on these events, Mr. Oyakawa, Calypte's President and Chief Operating
Officer stated, "We believe we now have sufficient capital to execute most of
our business plan. Our focus for the next two quarters will be operations -- en
route to rapid urine revenues, which we anticipate no later than the summer of
next year. Execution of these goals will be the highest priority."

Further information is available in the company's SEC Form 10-QSB filed earlier
today. As noted therein, Calypte was contacted by the San Francisco District
Office of the Securities and Exchange Commission (the "Commission") on October
28, 2003 and advised of an informal inquiry being conducted by the enforcement
staff of the Commission regarding the Company.  The staff has requested, among
other things, documents and information related to certain press releases issued
by the Company.  The Commission has advised the Company that the inquiry should
not be construed as an indication by the Commission or its staff that any
violation of law has occurred.  The Company is in the process of voluntarily
providing information sought by the Commission and intends to cooperate with the
Commission in connection with its informal inquiry. Independently, the Company's
Audit Committee is investigating the matter and intends to make recommendations,
if applicable, to the board of directors.  Calypte's independent auditors, KPMG
LLP, have informed the Company that they will not complete their quarterly
review until such time as the Company's Audit Committee completes its
investigation and the same is reviewed by KPMG LLP.

Calypte management will host a conference call Monday November 17, to discuss
the Company's third quarter financial results as well as provide an update on
the Company's current activities at 12:00 p.m. Eastern Time.

The call can be accessed in the U.S. by dialing 800-901-5217 and outside of the
U.S. by dialing 617-786-2964.  The participant passcode is 58765973. The
conference call will also be Web cast live at http://www.calypte.com/.  An audio
replay of the call will be available, beginning approximately 1 hour after the
conference  call ends, by dialing 888-286-8010 in the US, or 617-801-6888 from
outside of the U.S. The account code for the playback is 13337320.  The webcast
will also be available for replay on the company's website.

About Calypte Biomedical

Calypte Biomedical Corporation, headquartered in Alameda, California, is a
public healthcare company dedicated to the development and commercialization of
urine-based diagnostic products and services for Human Immunodeficiency Virus
Type 1 (HIV-1), sexually transmitted diseases and other infectious diseases.
Calypte's tests include the screening EIA and supplemental Western Blot tests,
the only two FDA-approved HIV-1 antibody tests that can be used on urine
samples, as well as an FDA-approved serum HIV-1 antibody Western Blot test. The
Company believes that accurate, non-invasive urine-based testing methods for HIV
and other infectious diseases may make important contributions to public health
by helping to foster an environment in which testing may be done safely,
economically, and painlessly.

Statements in this press release that are not historical facts are
forward-looking statements within the meaning of the Securities Act of 1933, as
amended. Those statements include statements regarding the intent, belief or
current expectations of the Company and its management. Such statements reflect
management's current views, are based on certain assumptions and involve risks
and uncertainties. Actual results, events, or performance may differ materially
from the above forward-looking statements due to a number of important factors,
and will be dependent upon a variety of factors, including, but not limited to,
our ability to obtain additional financing and access funds from our existing
financing arrangements that will allow us to continue our current and future
operations and whether demand for our product and testing service in domestic
and international markets will continue to expand. The Company undertakes no
obligation to publicly update these forward-looking statements to reflect events
or circumstances that occur after the date hereof or to reflect any change in
the Company's expectations with regard to these forward-looking statements or
the occurrence of unanticipated events. Factors that may impact the Company's
success are more fully disclosed in the Company's most recent public filings
with the U.S. Securities and Exchange Commission ("SEC"), including its annual
report on Form 10-K for the year ended December 31, 2002 and its subsequent
filings with the SEC.

              CALYPTE BIOMEDICAL CORPORATION AND SUBSIDIARY

                  CONSOLIDATED STATEMENTS OF OPERATIONS
                  (in thousands, except per share data)
                                Unaudited

                                        Three Months Ended Nine Months Ended
                                          September 30,      September 30,
                                          2003     2002      2003     2002

   Revenues:
     Product sales                        $897     $493    $2,430   $2,861

     Cost of product sales               1,750    1,542     4,714    4,569
       Gross Margin (Loss) on product
        sales                             (853)  (1,049)   (2,284)  (1,708)

   Other operating expenses:
     Research and development costs        304      219       953      640
     Selling, general and
      administrative costs               2,754    1,565    12,371    4,867

       Total other operating expenses    3,058    1,784    13,324    5,507

         Loss from operations           (3,911)  (2,833)  (15,608)  (7,215)

   Interest income (expense)
    (primarily non-cash for both
     periods)                           (3,282)   1,326    (6,054)  (1,210)
   Gain on settlement of debt                -        -         -    1,319
   Other income (expense)                  (30)      12       174       33

         Loss before income taxes       (7,223)  (1,495)  (21,488)  (7,073)

   Income taxes                              -        -        (2)      (2)

         Net loss                       (7,223)  (1,495)  (21,490)  (7,075)

   Less dividends on mandatorily
    redeemable Series A
     preferred stock                       (30)     (30)      (90)     (90)

   Net loss attributable to common
    stockholders                       $(7,253) $(1,525) $(21,580) $(7,165)

   Net loss per share attributable to
    common stockholders
     (basic and diluted)               $ (0.11) $ (0.51) $  (0.75) $ (3.41)

   Weighted average shares used to
    compute net loss per share
     attributable to common
      stockholders
      (basic and diluted)               68,862    2,976    28,796    2,098


                    CALYPTE BIOMEDICAL CORPORATION AND
                                SUBSIDIARY

                     CONSOLIDATED BALANCE SHEET DATA
                              (in thousands)
                                Unaudited

                                                         September  December
                                                              30,      31,
                                                             2003     2002

   Cash and cash equivalents                             $  8,960  $   147
   Working capital                                          6,455   (5,549)
   Total Assets                                            15,261    3,297
   Convertible notes and debentures,
    net of discount                                           801    2,181
   Other long term liabilities                              1,654       33
   Mandatorily redeemable Series A
    preferred stock                                         2,666    2,576
   Total stockholders' equity
    (deficit)                                               4,683   (7,494)

   Investor Relations Contact:
   Tim Clemensen
   212-843-9337
   email: 

DATASOURCE: Calypte Biomedical Corporation



CONTACT:  Tim Clemensen of Rubenstein Investor Relations,

[phone], for Calypte Biomedical; or Richard Brounstein, CFO of Calypte

Biomedical Corporation, [phone]



Web site:  http://www.calypte.com/ 

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